On June 3, 2025, GE HealthCare Technologies Inc. (GEHC) launched a significant debt offering consisting of \(650 million 4.800% notes due January 15, 2031, and \)850 million 5.500% notes due June 15, 2035. This move comes as part of GEHC’s strategic capital allocation to optimize its financial structure amid an evolving macroeconomic landscape and industry-specific challenges. The total $1.5 billion raised is poised to strengthen GEHC’s liquidity and enhance its capacity to invest in growth initiatives and innovation in the healthcare technology sector.
As of the most recent fiscal year ending December 31, 2024, GEHC reported total liabilities of approximately \(24.44 billion, with long-term debt accounting for \)7.45 billion. The company’s interest expense for 2024 stood at \(505 million, while total revenues were about \)19.67 billion. The long-term debt to equity ratio was 0.93, reflecting a moderately leveraged position compatible with capital-intensive healthcare technology firms.
With this new debt issuance, GEHC is expected to increase its long-term debt exposure, potentially raising annual interest obligations. However, with an EBIT interest coverage ratio of 6.14 as of FY 2024, GEHC demonstrates robust capacity to service its debt, indicating a comfortable buffer before financial distress.
In prior earnings calls, GEHC management emphasized disciplined capital deployment, prioritizing organic growth, strategic mergers and acquisitions aligned with portfolio strategy, and a strong commitment to debt repayment and shareholder returns. For example, in Q1 2025, GEHC repaid $250 million of debt, highlighting its focus on strengthening the capital structure despite undertaking growth investments. The current offering aligns with this narrative, providing financial flexibility to support continued innovation and market expansion.
Capital allocation strategies at GEHC encompass a balanced approach—supporting organic development, pursuing targeted M&A, managing tariffs and supply chain uncertainties in manufacturing, and returning cash to shareholders through authorized share repurchase programs.
GEHC’s earnings calls revealed an active focus on mitigating tariff impacts, especially concerning semiconductor supply chains integral to healthcare devices. The company has been strategically adjusting inventory cycles against tariff-driven cost pressures while leveraging pricing strategies to offset cost increases. This proactive management is indicative of GEHC’s resilience amid economic uncertainties.
GEHC’s $1.5 billion debt issuance bolsters its financial groundwork to execute strategic initiatives that fuel growth and maintain competitive edge. The company’s healthy interest coverage ratio and manageable leverage signal financial prudence, underscoring GEHC’s capability to withstand macroeconomic challenges and sustain its innovation trajectory.
Investors tracking GEHC should consider how this capital infusion supports continued R&D, potential acquisitions, and overall market positioning in a rapidly evolving healthcare technology landscape.
For a detailed overview of the debt offering, refer to GEHC’s official SEC 8-K filing here.
Tags: GEHC, GE HealthCare Technologies Inc, FY 2024, debt offering, capital allocation, healthcare technology finance